"In a sign that UBS AG's high-profile spat with the [IRS] is chipping away at Switzerland's private banking industry, some Swiss banks are cutting off or curbing business with American clients for fear of crossing US authorities. A number are no longer accepting deposits from US-based customers, or allowing them to open accounts. ... The battle has made some banks in Switzerland see clients based in the USD-regardless of nationalitiy--as an expensive liability. ... For American citizens, who are taxed by the US government on all world-wide income, regardless of its origin, Swiss banks don't offer obvious legal tax advantages. ... Over the past several weeks, Zurich-based retail bank Zurcher Kantonalbank decided to no longer accept business from US cloients, a spokesman said", Katharina Bart at the WSJ, 21 July 2009, link: http://online.wsj.com/article/SB124812576770166239.html.
Why the big push to stop Americans from holding money in Swiss banks? Is it to reduce tax evasion? Or should we don our tin foil hats and expect the 1963-74 Interest Equalization Tax to return, and Treasury figures it will be easier to enforce such tax if Americans hold no money abroad? Stay tuned.
4 comments:
I guess that would bring the dollars home...
now, all we do is wait for the European countries to demand that the US give up the names of 5000 of their biggest "tax evaders" that have accounts US banks.
What timing. I am an American, commenting from Zurich, as I am performing due diligence on two private Swiss banks. My current Zurich private bank is kicking out all its U.S. customers.
Why do I have my long-term money in Switzerland? Because it is 100% invested in gold, silver, and gold and silver mining stocks, and I want to keep such from forced sale by U.S. authorities, as happened in Mar. '33 with FDR's entry into office.
I report applicable earnings and report the presence of my account to the IRS and Treasury. But, I want to be able to say, 'Hell no, I will not comply with your illegal order to turn in my precious metals, you schmucks/shysters/shylocks.'
What about income tax?
Suppose there was a new rule that charged income tax on the mark to market value of the account in dollars at the end of each
year?
With Congress (& Ben) printing the dollar increase could be huge.
Historical large inflations aren't in percentages but how many zeros were added.
How do you deal with that?
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